TYPES OF POLICIES
The following are the various types of policies:
These refer to the overall policies of the organization. These policies decide the goals of the activities of the organization as a whole.
Functional Policies are prepared for different functions such as production, marketing, finance, personnel etc. Functional policies are decided keeping in view the organizational policies. These policies help in coordination of efforts of different people.
These are those policies which are initiated by the managers. These policies are prepared for the guidelines of the subordinates. It is also known as Internal policy.
This type of policy is formulated only on the request of the subordinates. This policy helps the subordinates to handle some situations. If the existing policy does not give any scope to handle extraordinary situations; appealed policy is to be formulated.
These policies are not formulated by the organization itself. These are the policies which are imposed upon an organization by outside forces like the government, trade unions, trade associations etc. This is a common form of policy in these days because the role of external agencies is increasing day by day. It is also known as External policy.
A policy which does not create any impact on the performance of the employees. The policy may represent the philosophy of the top management executives. For example: motivating the employees to perform the job in a better way. It is a general policy.
It is a policy which is formulated with regard to any specific issue i.e. transfer, promotion, compensation etc. A specific policy must conform to the broad outlines mentioned in the general policies.
It is a policy which is formulated and intimidated in the written form. Here, there is no possibility of any degree of deviation. Everyone should adhere to the written policy.
A policy is inferred from the behavior of the superior. It is an implied policy. Such policies are more flexible than other policies.
These are those policies which give a unified direction to the overall concern and imply the commitment of the resources. These policies give shape to the concern in the accomplishment of its purpose. They should also be supportive to the organizational objectives.
These policies are meant to be formulated to support the major policies. A concern may have the development of a new product as a major policy; the research to find out the unfulfilled needs of consumers may be a supportive policy.
The policies which do not influence the main objectives of the enterprise may be called minor policies. These policies may relate to some routine matters of some less importance. A policy maybe to hire some more workers in case of some emergency.
Some concerns have number of policies or group of policies. To increase sales, a concern may follow expansion, taking up of similar products, following aggressive marketing etc. To achieve one objective a number of policies may be used, these are composite policies.